Clare Anderson (Smith & Williamson) explains how the regime works and the process of claiming.
The UK patent box regime is a generous relief that was introduced in 2013 to incentivise companies to retain and commercialise existing patents and to develop new innovative patented products.
The mechanism of the relief is by way of an additional deduction claimed in the company’s tax computation to give an effective corporate tax rate on qualifying IP profits of 10%.
It is necessary to carry out a multi-step calculation and while this can be a cumbersome calculation it does represent a significant tax saving when compared to the current rate of corporation tax payable of 19%.
Changes were introduced from 30 June 2016 which will be mandatory from 1 July 2021. The calculation is now streamed by IP right and based on a ‘modified nexus’ approach linking relevant R&D expenditure to...
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Clare Anderson (Smith & Williamson) explains how the regime works and the process of claiming.
The UK patent box regime is a generous relief that was introduced in 2013 to incentivise companies to retain and commercialise existing patents and to develop new innovative patented products.
The mechanism of the relief is by way of an additional deduction claimed in the company’s tax computation to give an effective corporate tax rate on qualifying IP profits of 10%.
It is necessary to carry out a multi-step calculation and while this can be a cumbersome calculation it does represent a significant tax saving when compared to the current rate of corporation tax payable of 19%.
Changes were introduced from 30 June 2016 which will be mandatory from 1 July 2021. The calculation is now streamed by IP right and based on a ‘modified nexus’ approach linking relevant R&D expenditure to...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
